Use the Fact Situation in Q2 to Answer the Related

question 22

Multiple Choice

Use the fact situation in Q2 to answer the related question that follows. One major concern that A and B will have related to carrying on their business over the Internet is

• A)identity theft.
• B)public safety.
• C)fraud.
• D)money laundering.
• E)tax evasion.

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Definitions:

Insurance Expense

The cost incurred by a business or individual for obtaining protection against various risks, recorded as an expense in the accounting period in which it is incurred.

Straight-Line Method

A depreciation method in which an asset's cost is evenly spread over its useful life, resulting in equal depreciation charges each period.

Salvage Value

The estimated amount that an asset is worth at the end of its useful life.

Depreciation Expense

The monetary amount representing the reduction in the value of an asset over a specified period due to wear and tear or obsolescence.